Gold Prices Soar to Record Levels, Tokenized Market Clocks $3B Milestone

Tokenized Gold Market Nears $3 Billion as Spot Gold Hits Record $3,800 – 30/9/2025

Gold’s historic rally continued Monday as spot prices surged past $3,800 per ounce, marking another record high and extending bullion’s strong 2025 performance with nearly 47% year-to-date gains.

The surge is reflected in the tokenized gold market, where blockchain-backed tokens XAUT (Tether) and PAXG (Paxos) reached record monthly trading volumes in September. Combined, tokenized gold now holds an all-time market capitalization of $2.88 billion, with XAUT at approximately $1.43 billion and PAXG at $1.12 billion.

Both tokens, fully backed by physical gold but settled on blockchain networks, offer investors the ability to trade and transfer gold digitally, around the clock. Liquidity has also expanded alongside the rally: PAXG saw over $40 million in net inflows last month, with trading volume exceeding $3.2 billion, while XAUT hit $3.25 billion in monthly turnover, entirely fueled by gold price appreciation rather than new token issuance.

Macro conditions remain supportive for gold, with expectations of additional Federal Reserve rate cuts, a softer U.S. dollar, and concerns over a potential U.S. government shutdown driving demand. Meanwhile, Bitcoin, often dubbed “digital gold,” continues to lag, posting a 22% gain year-to-date.